• iPhone Dominates Smartphone Profits

    Ever since the release of Apple's iPhone sales have been beyond what anyone could have ever hoped for. Estimates now have Apple having:
    8% of all mobile phone revenue and a whopping 32% of the industry's handset profits.
    In the first 2 quarters of 2009 Apple has been estimated to have earned around $5 billion in operating revenue, $2 billion of which is profit. The high profit margin of their products allowed them to over take Nokia as the 2nd most profitable smartphone company.

    Since these estimates only consider the first two quarters of the year 2009, the sales were shown to drop off towards the time of the announcement of the new iPhone and the estimates just barely take into account the rush of sales from the release of the newest iPhone, the iPhone 3GS. Estimates towards the end of the year would show the full effects of the release of the new iPhone.

    The real question is, how did Apple, a nobody in the smartphone market, over take the Goliaths of the market with a product that is only 3 generations old? The strategy was similar to that of the iPod. Seamlessly integrating it with iTunes and the AppStore, the iPhone was able to differentiate itself from other smartphones by having a work and a play side to it. The AppStore also created a:
    formidable smartphone ecosystem, which history suggests is very difficult to overcome

    Apple iPhone Dominates Smartphone Profits | John Paczkowski | Digital Daily | AllThingsD
    AppleInsider | Report: iPhone grabs 32% of global handset profits
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